Emerging Markets To Drive Twitter's Future Growth

by CXOtoday News Desk    May 28, 2014

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Social media company, Twitter will experience a boom in user growth, especially owing to its increased presence in the developing countries, according to a new report from eMarketer, which indicates over 40% of Twitter users will be located in the Asia-Pacific region by 2018, followed by Latin America and Middle East.

The study predicts the social networking major to grow close to 25% this year to 227.5 million total users, and then increase another 18.5% to 269.6 million in 2015, thereby reaching nearly 400 million users by 2018.

This sustainable growth will mainly come from the developing markets of India, Indonesia, Argentina, Mexico, and Brazil, where users are increasingly using the internet and logging on to Twitter for faster communication. In India, for example, eMarketer said that Twitter could see nearly 60% user growth this year, as the social channel played a huge role in the recently concluded elections. Currently Twitter is planning to replicate its India success elsewhere in the world where polls will be conducted later this year.

Read: Twitter To Replicate India’s Election Innovation Globally

Mobile is touted as the most widely used channel for Twitter, the phenomenal growth in mobile devices in the developing countries will drive the increase in the user number in these parts of the world.

The study also suggests that Twitter’s user growth will be flat in major developed markets within five years. By 2018, user growth in Twitter’s key markets of the United States and Japan will have steadily declined to 6.4 and 6.1 percent, respectively, while its global user count will have reached just 386.9 million users, it says.

While many believe Twitter’s reliance solely on developing nations can prove to be a weakness, because digital advertising prices remain far lower in emerging markets, its entry into China can prove to be a game changer. While China has banned both Facebook and Twitter service, Reuter reports that Twitter Chief Executive Dick Costolo visited China for the first time in March and met with local government officials. The company dismissed the likelihood of launching operations there, and the Chinese state media downplayed the visit. But eMarketer state, in the long run, it may ultimately have a significant impact on the growth.

 It has also said that the importance of user growth and expansion into emerging markets means that the company will have a solid foundation to develop a global ad revenue stream. Quickly establishing ads across the world could help the company finally become profitable, which can be a challenging task Twitter will have to overcome.